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Rosneft chief executive and politician Igor Sechin says the company is in a $270 billion 25 year oil deal with China. Not bad. (Image credit: AFP/Getty Images via @daylife)

Russia inked a sizable oil deal with China on Friday, signing a $270 billion deal to supply oil to fossil fuel thirsty China for 25 years.

, Russia's biggest oil company, will be doing the drilling and the delivering for state-owned oil behemoth China National Petroleum Corporation.

The deal will see the supply of 365 million metric tons of oil to China starting next month, according to media reports. Igor Sechin, the chief executive of Rosneft, was quoted after being interviewed during Russia's annual economic forum in Saint Petersburg. Sechin said deliveries could start as early as this year.

Asked to comment on the report, a source from CNPC told China Daily that the deal had been in discussion for months, since Chinese President Xi Jinping visited Moscow back in March. During a visit to Russia on Thursday, Vice-Premier Zhang Gaoli said that China wants to work with Russia to maximize the potential for bilateral economic cooperation, undoubtedly most of it for oil and gas.

Rosneft shares have underperformed the Russian stock market this year, down 17.5% year-to-date on the RTS-Micex exchange in Moscow.